IBS Journal December 2016
45
£200+… Which? has named and shamed three UK banks which it says are doing less than the rest to limit
spending on stolen contactless cards. The consumer group ‘stole’ 12 contactless credit and debit cards to see how much a thief could spend unchecked (the current limit is £30). It used them continuously (splashing out £20-30 each time) in High Street stores until it was asked for a PIN, or the card was blocked.
Barclays, the Co-operative Bank and TSB let it spend more than £200 through 10 consecutive transactions in just a few hours on debit cards, and it was never asked for a PIN. In contrast, credit cards tested from Barclaycard, Halifax and Santander, plus the debit cards from first direct, HSBC, Lloyds, NatWest, Nationwide and Santander, either asked for a PIN, or blocked the card, after three to five consecutive transactions. Barclaycard, Nationwide and Santander also called or texted the card owner to check everything was above board.
The Co-operative Bank said that the contactless function involves a risk to the bank, which is closely controlled and monitored. TSB claimed its debit cardholders are no more vulnerable to contactless fraud than customers of other UK card issuers, and that the benefits far outweigh the amount of fraud. Barclays told Which? that all transactions made after a card is reported lost or stolen are checked with the customer and will not appear on their account if fraudulent.
$9.2 BILLION… US digital payments startup Stripe has raised $150 million in its latest funding round,
valuing the company at $9.2 billion. The Series D round was led by CapitalG and General Catalyst, with existing investors such as Sequoia Capital also involved. The previous valuation was $5 billion, based on funding secured in 2015.
Stripe says it will use the cash to step up international expansion, broaden its developer tools, and widen its scope to include more of the problems that businesses face and help firms to get started.
3… UK banks are considering the launch of a new digitised card to counter a surge in fraud. The offering, which is
being adopted by FIs in Latin America, features a constantly changing digital read out on the back, instead of a permanent three-digit code on the security strip. It is operated by a battery and a microchip, which renews the three-digit code every 20 minutes.
Gemalto, which is developing a version of the card, claims the technology will make life extremely difficult for fraudsters. Gemalto spokesperson Lysa Coombs told Sky News: “It means that you physically have to have the card in your possession in order to make a purchase online or over the telephone. If you have simply harvested the card’s details to commit fraud, you won’t be able to do that as you won’t have the up-to-date security code.”
£2 BILLION… UK shoppers spent more than £2 billion on Visa cards during Black Friday, with nearly half of that occurring online. This was up 13% compared to the 2015 event.
€1.3 MILLION…BNP Paribas has participated in the first ever funding round for French FinTech PayCar,
taking a €1.3 million stake in the business. The startup is behind a payment platform for second-hand vehicles. It began an incubation process at the Accélérateur Fintech by L’Atelier BNP Paribas in March this year, working closely for four months with the Group’s insurance arm BNP Paribas Cardif. Various opportunities were highlighted; going forward, for instance, customers will be able to make use of a digital bank cheque issued by the FI’s retail bank, take out vehicle insurance through BNP Paribas Cardif and obtain a consumer loan from BNP Paribas Personal Finance.
www.ibsintelligence.com
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